Thinking of Renting Out Your Property ?
Top Tips in Today ’ s Economy
NATALIE VAN ZYL
Natalie Muller is the Head of Rentals for Jawitz Properties Western Cape and Gauteng . With a career in real estate spanning 22 years , Natalie started as a conveyancing secretary for a top legal firm in Namibia , discovering her passion for property that saw her joining her family ’ s boutique property business in the Cape ’ s Hout Bay , to being a real estate coach , upskilling and educating 1500 + property agents in Namibia . It was when she was managing an agency in Hout Bay that Jawitz Properties head hunted her to head up their regional rentals division . She has found her niche in rental property citing the legislation and opportunities to assist and educate clients and agents alike , as her true calling .
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enting out your property is one of the many options available to make some extra money , and with the economy putting extra strain on us all , a lot of people are only able to afford to rent , which gives rise to high demand for properties to rent out .
If you ’ re considering renting out your home , it can be a lucrative opportunity , but there are some things you should think about first - particularly as times get tougher economically .
Credit checks
It is essential to have thorough credit checks done on prospective tenants – and that includes every tenant . When renting to a married couple , a credit check should be performerd on both parties , in order to avoid defaults on rent .
Correctly screening tenants can be done effectively through the help of a rental agent . Be aware that if a tenant is happy to shortcut a rental agent ’ s fees and rent from you directly , they may also be happy to later short change you on the rent .
Once a tenant has given permission for a credit check to be done , it means they can be checked again at any time during the lease period . Tenant profiles can change monthly . With times getting tougher , continuous credit checks show whether or not a tenant is keeping up with personal bills , and if accounts are suddenly not settled , it can indicate that the tenant is in trouble .
By being aware whether or not tenants can continuously afford both the rent and their lifestyle , it is easier for landlords to make informed decisions about renewing leases , or if it comes to it , making sure they serve notice accordingly .
Insurance products
There are also insurance products that landlords can take out to mitigate the risk of a tenant defaulting . One option , for example , involves the landlord paying a nominal fee for a policy providing access to three months of rental income , as well as to funds and resources if you need to pursue a tenant in court . An eviction process can cost anything in the region of R25 000 to R100 000 and can take six weeks to six months to settle , so it can be very useful having a policy like this to protect your pocket .
Quality over quantity
Keep in mind that by taking a slightly lower rental and securing a quality tenant will mean more money than holding out for your desired price . It is important to weigh up the risks : keep an existing , good standing tenant paying a lower rental increase , or wind up with an unreliable tenant that could lead to your home sitting empty for months .
16 DECEMBER 2017 / JANUARY 2018 SA Real Estate Investor Magazine